Hold Rating Maintained Amid Recycling Headwinds and Mixed Segment Performance

Analyst Adela Dashian from Jefferies maintained a Hold rating on Tomra Systems ASA and keeping the price target at NOK135.00.

Adela Dashian has given his Hold rating due to a combination of factors including weaker‑than‑anticipated first‑quarter results and mixed performance across business segments. Revenue growth of 9% year over year fell slightly short of market expectations, and profitability significantly lagged, with adjusted EBITA flat versus last year and far below consensus, largely due to operational challenges and unfavorable mix in the Recycling division.

Dashian also notes that while the Food and Horizon segments are showing solid momentum, the sharp revenue decline and 20% backlog contraction in Recycling undermine near‑term visibility and earnings confidence. The Collection segment grew but was not strong enough to offset Recycling’s weakness, leading to an overall cautious stance where downside risks are balanced by areas of resilience, supporting a Hold rather than a more decisive Buy or Sell recommendation.

Dashian covers the Industrials sector, focusing on stocks such as Munters Group AB, AFRY AB Class B, and Systemair AB. According to TipRanks, Dashian has an average return of 4.4% and a 43.69% success rate on recommended stocks.